IT major Tech Mahindra announced its acquisition DigitalOnUS a hybrid cloud and DevOps services provider, for USD 120 million (about Rs 898 crore) to augment hybrid-cloud offerings for enterprise customers globally. Tech Mahindra has acquired 100 per cent stake in the organisation to strengthen cloud-native development, hybrid cloud infrastructure and SRE (Site Reliability Engineering) automation.
Tech Mahindra said the total consideration for the deal is “up to USD 120 million including retention bonus and Earnout”.
DigitalOnUs is headquartered in San Jose, the US, and has more than 380 employees. For the financial year ending December 31, 2020, its revenue was at USD 30.6 million.
Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services and solutions, today announced that it has acquired DigitalOnUS, a leading hybrid cloud and DevOps services provider, to augment hybrid-cloud offerings for enterprise customers globally. Tech Mahindra has acquired 100% stake in the organisation to strengthen cloud-native development, hybrid cloud infrastructure and SRE (Site Reliability Engineering) automation.
Vivek Agarwal, President- Corporate Development, BFSI and HLS, Tech Mahindra, said, “The acquisition of DigitalOnUs marks an important milestone in Tech Mahindra’s growth journey, and will further enhance our capability in cloud native engineering, and better equip us to develop cutting-edge digital solutions for our customers. scaling up near shore delivery capability, with majority in Mexico and Canada will be critical to execute digital transformation programs. We welcome the associates of DigitalOnUs into the Tech Mahindra family, and look forward to achieving great success together. We are also looking forward to have Suri play a key role as part of our North America’s leadership team to further drive digital transformation journey of our customers.”
The strategic acquisition will further elevate Tech Mahindra’s position as a partner of choice for hybrid-cloud digital transformation, providing end-to-end transformation and new-age capabilities including enterprise DevOps and cloud native development technologies. Additionally, Tech Mahindra will leverage DigitalOnUs expertise to build multi-cloud platforms, modernize IT security and unlock the cloud operating model for enterprises to accelerate their cloud modernization journey.
Suri Chawla, Founder and CEO, DigitalOnUs, said, “We are excited and looking forward to the journey that both DigitalOnUs and Tech Mahindra have embarked upon. The acquisition by Tech Mahindra represents an important step in DigitalOnUs’s growth journey as it provides our organization and its people with extensive global reach and customer access to scale and tap into many more significant opportunities. Our team at DigitalOnUs is looking forward to being a part of Tech Mahindra and continuing to offer innovative, agile and industry leading services to our current and future customers.”
The acquisition underlines Tech Mahindra’s focus on digital growth, under the NXT.NOW framework, which is focused on leveraging next generation technologies to deliver disruptive solutions ‘today’, and further enable digital transformation, meet the evolving and dynamic needs of our customers.
Tech Mahindra is part of the Mahindra Group, a USD 19.4 billion federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It enjoys a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world’s largest tractor company by volume. It also enjoys a strong presence in renewable energy, agribusiness, logistics and real estate development. Headquartered in India, Mahindra employs over 2, 56,000 people across 100 countries.